Residential Real Estate News
NAR Reports Existing Home Sales Tumble in March, Hit 16-Year Low
According to the National Association of Realtors (NAR), U.S. existing-home sales fell in March 2025, with declines observed across all four major regions. Compared to March 2024, sales were down in the Midwest and South, up in the West, and unchanged in the Northeast.
Market Overview
Total existing-home sales -- which include single-family homes, townhomes, condominiums, and co-ops -- dropped 5.9% from February 2025 to a seasonally adjusted annual rate of 4.02 million in March. This represents a 2.4% year-over-year decrease from 4.12 million in March 2024.
"High mortgage rates continue to challenge affordability, contributing to the sluggish pace of home buying and selling," said NAR Chief Economist Lawrence Yun. "Residential housing mobility is at historic lows, raising concerns about broader economic mobility."
Inventory and Prices
Housing inventory at the end of March stood at 1.33 million units, up 8.1% from February and 19.8% from one year earlier (1.11 million). At the current sales pace, this represents a 4.0-month supply -- an increase from 3.5 months in February and 3.2 months in March 2024.
The median existing-home price for all housing types was $403,700 in March, up 2.7% from $392,900 a year ago. All four U.S. regions saw year-over-year price increases.
"Unlike volatile stock and bond markets, residential real estate continues to build household wealth," Yun added. "With mortgage delinquencies near historical lows, the market remains stable. A moderation in home price growth, now slightly trailing wage gains, would enhance affordability. Considering real estate assets are valued at $52 trillion, each 1% price increase adds over $500 billion to U.S. household balance sheets, according to Federal Reserve data."
Realtors Confidence Index Highlights
- Time on Market: Homes typically stayed on the market for 36 days in March, down from 42 in February but up from 33 in March 2024.
- First-Time Buyers: Accounted for 32% of sales in March, up from 31% in February and equal to the share in March 2024. NAR's 2024 Profile of Home Buyers and Sellers (published in November) reported a record low annual share of 24%.
- Cash Sales: Represented 26% of transactions in March, down from 32% in February and 28% in March 2024.
- Investor Purchases: Individual investors and second-home buyers made up 15% of purchases, down from 16% in February and flat compared to last year.
- Distressed Sales: Comprised 3% of total sales in March, unchanged from February and up from 2% in March 2024.
Mortgage Rates
Freddie Mac reported that the average 30-year fixed mortgage rate reached 6.83% as of April 17, up from 6.62% the previous week but down from 7.1% one year ago.
Sales by Property Type
- Single-Family Homes: Sales dropped 6.4% in March to a seasonally adjusted annual rate of 3.64 million, a 2.2% year-over-year decrease. The median price rose 2.9% to $408,000.
- Condos and Co-ops: Sales held steady at an annual rate of 380,000, down 5.0% year-over-year. The median price increased 1.5% to $363,000.
Regional Breakdown
- Northeast: Sales declined 2.0% from February to 490,000 (unchanged from March 2024). Median price: $468,000, up 7.7%.
- Midwest: Sales dropped 5.0% to 950,000, down 3.1% from a year ago. Median price: $302,100, up 3.5%.
- South: Sales decreased 5.7% to 1.81 million, down 4.2% year-over-year. Median price: $360,400, up 0.6%.
- West: Sales declined 9.4% to 770,000 but rose 1.3% from March 2024. Median price: $621,200, up 2.6%.
